Interim Results

NewMedia SPARK PLC
20 December 2000

                                                             20 December 2000


                              NewMedia SPARK Plc


          Interim Results for the six months ended 30 September 2000

NewMedia SPARK Plc ('SPARK') today announces its interim results for the six
months ended 30 September 2000:



  * Total assets:  £172.7m

                   - 23% cash (£39m)

                   - 70% (£120.8m in 49 companies)


  * Consolidated net asset value per share 54p  (77p as at 31 March 2000)

  * Total issued share capital increased to 321.3m shares

  * Pre-tax losses: £1.4m  (pre-tax profits £2.8m for period 26 July 1999 to
    31 March 2000)

  * Acquisitions of Softtechnet.com PLC and NewMedia Investors Ltd completed

  * International expansion:

                   - Operations commenced in Germany and Spain

                   - Presence established in India


  * Since 30 September 2000, SPARK has acquired Internet Indirect plc which
    will contribute approximately £70m in cash and 6 investments


Michael Whitaker, Chief Executive Officer said:

'Over the past six months, SPARK has consolidated its European presence and
continued to build its portfolio.  Nevertheless, in view of the severe turmoil
in TMT markets worldwide in recent months, the Board has taken a conservative
view of the carrying value of the portfolio.  We remain optimistic about the
long term future of many areas of the TMT sector and will continue to pursue
our strategy of investment in early stage technology companies.  SPARK is now
a leading investor in this sector in Europe with a balanced portfolio of TMT
investments which we believe will deliver substantial returns to our
shareholders in the medium to long term.'


For further information, please contact:
Michael Whitaker                              Tel:  [phone]
NewMedia SPARK

Isabel Petre
Buchanan Communications                       Tel:  [phone]


Chief Executive Officer's Statement

Introduction

In our first Annual Report I highlighted the importance to SPARK of growing
the scale of our organisation as well as increasing our presence in Europe in
order to harness the tremendous opportunities for early stage investing in the
technology sector.  I am pleased to report that, over the past six months,
SPARK has opened offices in Berlin and Madrid and established a presence in
India.  SPARK has also completed the acquisitions of Softtechnet.com PLC,
NewMedia Investors Ltd and, since 30 September 2000, of Internet Indirect plc.
These events will ensure that SPARK has sufficient financial and human
capital to develop and expand its portfolio in a balanced and diversified
manner - enabling us to strengthen our leading position in early stage
technology investment.

Clearly the last six months, and in particular the last few weeks, have been a
period of extraordinary turmoil in the technology, media and telecoms ('TMT')
markets worldwide.  We regard this as an inevitable reaction to the equally
extraordinary period of speculative excess that preceded it.  In the short
term, it is difficult to judge when TMT markets will experience a sustained
recovery.  However, we remain optimistic about the long term future of many
areas of the TMT markets.  In particular we continue to concentrate our
investments on core software applications, communications infrastructure
businesses and certain areas of digital media such as music and financial
products.  However we do not share the blanket pessimism of many commentators
over the prospects for the 'dotcom' sector - indeed several of our 'dotcom'
investments are making considerable progress and are beginning to develop into
meaningful businesses.


Results

Total net assets as at 30 September 2000 amounted to £172.7 million of which
23% represented cash (£39 million) and 70% investments (£120.8 million in 49
companies).  The total number of issued shares has increased to 321.3 million.
In the six months to 30 September 2000, pre-tax losses amounted to £1.4
million compared to pre-tax profit of £2.8 million in the period 26 July 1999
to 31 March 2000.  Unrealised losses arising principally from the revaluation
of the investment portfolio have led to the decline in the consolidated net
asset value per share of 30% from 77p to 54p, and by 25% from 71p to 53p
taking into account unexercised warrants.


Current activities

SPARK has strengthened its human and financial capital through three
transactions.  In June 2000 SPARK successfully completed the acquisition of
Softtechnet.com PLC for SPARK shares and warrants.  The acquisition gave SPARK
a portfolio of five early-stage technology companies, approximately £23
million of cash and an established vehicle through which to make investments
in India.  In September SPARK completed the acquisition of New Media Investors
Ltd for SPARK shares.  SPARK has gained full control over the valuable deal
origination and extensive investment management and corporate finance skills
held by NewMedia Investors Ltd.  Finally, in November 2000, SPARK acquired
Internet Indirect plc for a combination of SPARK shares and warrants as well
as EO shares held by SPARK.  The Internet Indirect plc acquisition will bring
six high technology and internet-related investments to SPARK as well as
approximately £70 million of cash.

The goodwill arising on acquisitions will be written off over 5 years on a
straight-line basis from the dates of acquisition.

In the period to 30 September staff numbers rose by 10 to 50 employees based
in London, Stockholm, Berlin, Madrid and India.


Portfolio review

In the period to 30 September 2000 SPARK made 19 follow-on investments in
existing portfolio companies and 12 new investments.  Core software, B2B
infrastructure and digital television companies now represent 70% of the
portfolio in value and 45% in number.  Geographically, investments by number
are spread as to 55% in the UK, 31% in Sweden, 8% in India, 4% in other
European countries and 2% in the USA.  Overall, we believe that our portfolio
remains well balanced and is in a strong position to benefit from any
sustained market upturn.  Many of our investee companies continue to make
substantial progress and several show strong cash flow and are now well placed
to achieve flotations or disposals once market conditions allow.

SPARK values its portfolio of investments on a conservative and realistic
basis.  As was detailed in our Annual Report as at 31 March 2000, listed
investments are valued at mid-market price.  Unlisted investments are
incorporated at Directors' valuations.  In the case of unquoted investments
where a significant third party event has taken place that signifies a new
value for the investment, the Directors use this value.  All other valuations
are the cost of the investment subject to any decline in value.

In the light of the severe turmoil in TMT markets worldwide in recent months,
the Board of SPARK has taken a conservative view of the carrying value of our
unquoted portfolio.  In consequence and taken together with the impact of
changes in the prices of listed investments, we have written down the book
value of our portfolio by £45.5 million to £120.8 million.  Of this reduction
£39.1 million relates to reductions in the carrying value of our Swedish
portfolio following our decision to make substantial provisions in our Swedish
B2C, auction and Internet services investments.  The value of our quoted
investments has fallen by £3.1 million and the Directors estimates of our
remaining unquoted investments has given rise to a reduction of £3.2 million.
The non-Swedish portion of our portfolio has been helped by its relatively
heavy concentration in core technology and software investments and several
positive funding events during the period.

The book valuation of our two largest investments, eTV and DX3, both of which
are majority owned by SPARK, has been left unchanged at an aggregate £52.3
million.  Both have made considerable progress during the period and we expect
that future funding events will substantiate our decision.


Conclusion

SPARK is now a leader in European early stage technology investment.
Following our acquisition of Internet Indirect plc the group will have cash
balances of approximately £100 million and investments in approximately 55
portfolio companies are valued, based on current estimates, at £124 million.
This places us in a strong position to negotiate attractive terms for further
investments, both in successful portfolio companies and in new companies.  Our
network of contacts and reputation amongst later stage venture capitalists and
corporate investors is strong and we are currently discussing further funding
rounds for several of our portfolio companies at valuations in excess of the
cost of investment.

We continue to work closely with all our portfolio companies to develop them
and maximise their value.  However we will not invest further funds into
unsuccessful businesses and the write downs included in our results to 30
September 2000 reflect the possibility that some of our investee companies may
fail to obtain further funding in the coming months.  Unlike other players in
the sector, we have not radically shifted away from early stage TMT investment
merely because the market has temporarily become more difficult.  We have
maintained and developed our core business - which is venture capital
investment at the seed and first round stage in new technology companies.  We
continue to believe that the long term rewards to our shareholders from this
strategy will be significant and that shareholders invest in SPARK to obtain a
broad exposure to a balanced, substantial portfolio of early stage unquoted
TMT investments.


Michael Whitaker
20 December 2000


NewMedia Spark PLC

Interim Financial Information

Six months to 30 September 2000


Consolidated Statement of Total Recognised Gains and Losses


                                                      Six months   26 July 1999
                                                              to             to
                                                    30 September       31 March
                                                            2000           2000
                                                           £'000          £'000
                                                       Unaudited        Audited
(Loss) / Profit for the financial period                 (1,272)          1,971
Unrealised (loss) / gain on financial fixed assets      (38,649)         18,064
Unrealised exchange differences                            (432)
Total recognised gains / (losses) relating to the
period
                                                        (40,353)         20,035


NewMedia Spark PLC

Interim Financial Information

Six months ended 30 September 2000


                                                 Six months to  26 July 1999 to
                                                  30 September         31 March
                                                          2000             2000
                                                         £'000            £'000
                                                     Unaudited          Audited

Consolidated Profit and Loss Account


Administrative expenses                                 (2,612)         (1,072)
Other operating income                                     422             126

Operating loss                                          (2,190)           (946)


Profit on disposal of fixed asset investments                -           3,173
Interest receivable and similar income                     805             624
Interest payable and similar charges                         -              (3)
(Loss) / profit on ordinary activities before
taxation
                                                        (1,385)          2,848

Tax on (loss) / profit on ordinary activities                -            (898)
(Loss) / profit on ordinary activities after
taxation
                                                        (1,385)          1,950
Equity minority interests                                  113              21

Retained (loss) / profit for the period                 (1,272)          1,971

(Losses) / earnings per ordinary share                   (0.53p)          1.22p

Diluted (losses) / earnings per ordinary share

                                                         (0.47p)          1.12p


NewMedia Spark PLC

Interim Financial Information

Six months ended 30 September 2000



Consolidated Balance Sheet
30 September 2000


                                                       30 September    31 March
                                                               2000        2000
                                                              £'000       £'000
                                                          Unaudited     Audited

Fixed assets

Intangible assets                                            13,920           -
Tangible assets                                               1,114         469
Investments                                                 120,775     151,787
                                                            135,809     152,256
Current assets

Debtors                                                       3,109       2,581
Cash at bank and in hand                                     39,022      33,531
Creditors: amounts falling due within one year

                                                            (2,390)     (5,263)
Net current assets                                           39,741      30,849

Total assets less current liabilities                       175,550     183,105

Equity minority interest                                    (2,862)     (9,693)

Net assets                                                  172,688     173,412

Capital and reserves

Called up share capital                                       7,984       5,630
Capital reserve                                               2,428           -
Share premium account                                       182,594     109,155
Shares to be issued                                               -      38,592
Revaluation reserve                                        (20,585)      18,064
Profit and loss account                                         267       1,971
Equity shareholders funds                                   172,688     173,412



NewMedia Spark PLC

Consolidated Cash Flow Statement

Six months to 30 September 2000

                                                         Six months     
                                                                 to     26 July
                                                                 30     1999 to
                                                          September    31 March
                                                               2000        2000
                                                              £'000       £'000
                                                          Unaudited     Audited
Net cash inflow / (outflow) from operating activities
                                                                111       (562)
Return on investments and servicing of finance
Interest received                                               805         624
Interest paid                                                     -         (3)
Net cash inflow / (outflow) from returns on investments
and servicing of finance
                                                                805         621
Capital expenditure and financial investment

Payments to acquire tangible fixed assets                     (676)       (458)
Payments to acquire investments                            (16,887)    (32,235)
Receipts from sales of investments                                -       3,851
Net cash inflow /(outflow) from investing activities

                                                           (17,563)    (28,842)
Acquisitions and disposals

Purchase of subsidiary undertakings                         (2,000)    (27,743)
Net cash acquired with subsidiaries                          24,138        459
Net cash inflow / (outflow) from acquisitions and
disposals
                                                             22,138    (27,284)
Net cash inflow / (outflow) before financing                  5,491    (56,067)

Financing

Issue of ordinary share capital                                   -      91,015
Expenses paid in connection with share issues                     -     (1,417)
Net cash inflow from financing                                    -      89,598

Increase in cash in the period                                5,491      33,531



INTERIM ANNOUNCEMENT - Notes



 1. The information relating to the six month periods ended 30 September 2000
    is unaudited. The information relating to the period ended 31 March 2000
    is extracted from the audited accounts of the Company which have been
    filed at Companies House and on which the auditors issued an unqualified
    opinion.

 2. The above financial information does not constitute statutory accounts
    within the meaning of Section 240 Companies Act 1985.

 3. Loss (31 March 2000: Earnings) per share is based on the weighted average
    number of shares in issue during the six months ended 30 September 2000 of
    238,605,347 (31 March 2000: 161,622,000). The diluted loss (31 March 2000:
    Earnings) per share is based on the weighted average number of shares in
    issue during the six months ended 30 September 2000 of 272,846,800 (31
    March 2000: 176,606,000).